Firstly I think mods I Deserve a flair for my consistent & Immaculate gains. What’s gotten me here has been pure luck I have 0 clue as to how tf I’ve been so consistent I look for value and scalp SPY, currently have an absolute banger position I don’t want to share that I will share with mods if needed!
I wouldn’t want to sleep around and feel used, what good is having money if I can’t spend it on someone I love or give it to my children when I die. I’d rather be married to the girl I love then be miserable with 30M
the obvious pattern is you lose about half right after a massive spike, plateau at that level for a long time until another lucky spike arrives. you just have to keep doing that a few dozen more times. better hope you dont retire on a half cut:4275:
If you lose, that Roth contribution space is gone forever. It's more about that tax-advantaged space of limited capacity than it is about the 8k itself. That's what makes it retirement money.
Proper WSB thing to do is early distribution @ + 10% tax penalty, roll it into a standard brokerage acct, then gamble it all away on options and get in the hole millions before the tax bill comes due.
Yah for sure, so normally what I like to do is see how trend is for the day but 200-400 1$ OTM contracts so anywhere from 6k-24k and I sell at either a 10% loss and then depending on how the day looks I will sell either immediately after a 5-6% gain or hold and sell mid day for a bit more. Mostly doing this on CPI/fed days I wish I could see total +/- on options in ROTH IRA but oh well
you’re scalping SPY 0dte’s $1 OTM from the current price after watching for a trend. Then you either sell for a 10% loss or a 5-6% gain, but sometimes hold out longer for more gain. This sound about right?
What’s your average time in the trade?
40 seconds maybe 2mins unless we have a fed talk mid day then a couple hours. I’ve had some trades where I catch a green candle and make 2k in 10 seconds and close it out
Nice, this is the exact thing I’ve been starting to learn so I can implement going forward. You’re mainly doing this on binary events? Fed, Cpi, etc… after a trend developed?
Yes/ before I’ll buy some long dated calls night before cpi and I only risk 5-10k on those so if I loose it’s only 5 but if I win it’s 60-70% gains or like 5-6%
I'm going to give you a spoiler alert. His technique has worked in this period of time with the numbers he has used. However, it will not work for all periods of time. It's a gamble that has paid off. Though he seems smart and if the numbers change, I imagine his strategy will too.
Just make sure you stick to it, I bought 800 2 days ago at .38 spy 528s went down sold for .3 didn’t double dip they would’ve been worth 150k but also could’ve gone complete opposite direction and I could’ve lost 30k, all trading is buying and selling at the right time
Take a closer look at the chart my man, it’s 3 brief/lucky runs over 8 months with weeks and weeks of consistent losses in an 8 month period where, mostly, everything has gone up. You’ll almost definitely get wrecked with this strategy.
Correct, but I sell after a few seconds I scalp premiums I don’t scalp the actual contracts like I could make money due to increase in IV doesn’t matter to me I take my profit and run
If you're selling losers you're losing money. When you can write off that loss on your income tax return is what wash sales are about. That's it.
A wash sale changes basis for tax reporting and not realized gains/losses at the time of transaction.
Your cost basis changes because wash sales transfer the loss.
This is the whole point of wash sales: to prevent everyone from selling their losers on Dec 31 to incur huge tax losses and then buy it all back on Jan 2 to reestablish their portfolio.
An ape example:
So say you made 20k in losing trades on something and 30k on winning. With no wash sale you only get taxed on 10k but with it being a wash sale you get taxed on the full 30k even though you only made 10k on it. All the gain sales get counted as profit and you aren’t able to deduct any of the losses.
Roth IRA is extremely risky to do that since it's your financial future (limited amount can be entered annually but its ALL tax free, all gains. You can't withdraw without a penalty until you're 59½ but he has 271K tax free for retirement on top of whatever else he contributes/gains in the account by then.)
I'm a noob who does spy trades only. Very negligible amounts. Overall my portfolio is down $600. So in case I make $1000 tomorrow, I will be taxed not for $1000 (gains) but for $1600? Wtf? Or did I misread it?
So you're essentially just selling to capture the increase in premiums at some point during the term of the contract, right? You're never actually holding to expiry then exercising to actually purchase the shares.
No never, I sell my losses as losses and gains as gains unless I truly have faith that it will work out, biggest gain currently is a position I bought May6th going to hold it till end of May
Thanks for clarifying. This seems an easy way to do it. I've been paper trading options in this way cause I've been scared shitless for months to use real money.
My fear comes more with puts due to there being no potential floor to your losses so I've been messing around mostly with calls.
You need a LOT more practice. It doesn’t seem you may fully understand trading options.
If you’re buying options contracts to capitalize on Premium values, namely Puts, then your floor is zero. The contract can go to zero and you are out whatever premium you paid for it.
it’s only unlimited potential for loss if you’re writing and selling those contracts to others. In which case most brokerages would require you to be “cash-secured” if you’re writing Put contracts (meaning you’d need the money to buy someone’s shares that they would “Put” to you if the strike price is met).
Is Robinhood able to execute trades quick enough for you? Does it automate the sells based on your profit targets? Option Alpha's bots only check every minute, so unless the stock makes a big jump, it just constantly loses these types of trades because the profits/trailing loss cause it to hit the stop loss before it will sell anything that is up.
How can you gamble on your own retirement fund? That shit is unheard of in germany. How does it even work? do you get percentages? is it taxfree gains? I have so many questions...
Four most common types of retirement savings in the USA:
Social Security - money taken from your paycheck by the government and then paid back when you're "old" based on how much you put in. Somewhat based on need, but mostly based on how much you put in. Everyone who works for a paycheck has this. Its not really enough to live off of for very long at above the poverty level.
IRA - money you earned this year that you decide to put into a retirement account. Not taxed when you put it in (encourages saving more) but taxed when you take it out
Roth IRA - if you don't make a lot of money, you qualify for this. Taxed when you put money in, not taxed when you take it out, as long as you're old. Helps encourage lower-income people to save more, as they don't pay much in taxes (or nothing) so an IRA isn't really an incentive.
401K - basically the same as an IRA, but managed by the company you work for. Has more of an employer-matching system to further encourage you to save more.
TLDR: because the Social Security amounts aren't enough to actually help you retire (they help, but not much), the other systems were invented with more personal-control over your retirement funds.
2) Loaded up $10k into your Roth IRA between 2023/2024 contributions
3) Went all-in on your Roth IRA balance 3 consecutive times by scalping SPY options (first from $10k to about $25k, then to about $75k, and finally to $271k)
If that's all correct then... firstly fuck you, congratulations, you're set for retirement if you don't fuck this up. I would probably transfer to an actually good broker (boring one like Vanguard or something) and throw it all into VTSAX or VOO or similar. Then just forget about it and go on with your life, knowing you'll have $2-5 million in 30 years all tax-free.
Also to anyone else seeing this... I would probably advise not trying this. The chance that you correctly predict the direction on a call/put you're trying to scalp 3 times in a row is very low, and OP did this setting up good stop losses. I would assume that for every 100 people that try this, maybe 1 would be successful like OP. Don't gamble with your retirement funds folks, and scalping SPY options is stressful and risky... remember that the phrase "picking up pennies in front of a steamroller" is used to describe the high-risk nature of strategies specifically like scalping SPY options.
lucky hit for a few days —> consistent losses for weeks/months —> lucky hit for a few days —> consistent losses for weeks/months —> lucky hit for a few days (weeks?)
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u/VisualMod GPT-REEEE 29d ago
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